April 11, 2008

Our recent Industry Bulletins have tended to focus on what many of us see as new 'hi-tech' rare metals applications, such as hybrid cars, flatscreen TVs, solar panels, and rechargeable batteries. What many of us don't readily see are the many more familiar everyday home appliances that now use rare metals such as the rare earth elements ("REE") to ensure better performance. In this edition, we focus on some of these everyday applications of rare metals.

Because of the high strength of their magnetic fields, REE magnets are ideal for size reduction of electric motors and energy conservation. For example:

• REE magnets are used in the motors that turn drum type washers and dryers, helping to reduce the vibration and noise.
• Vacuum cleaners use motors turning at high speeds to suction up dust and dirt. REE magnets are used in vacuum cleaner motors, enabling them to be smaller, quieter and more energy efficient.
• Air conditioners control the room temperature by compressing and expanding gas. REE magnets are used in the compressor motors in an effort to increase energy savings. Refrigerators effectively cool food using a similar
• REE are also used in elevator wind-up motors. Through the use of REE magnets, elevator wind-up motors more compact, light weight and energy efficient.

http://www.shinetsu-rare-earth-magnet.jp/e/rare/

Materials science innovation, taking advantage of the unique properties of REE, is one way that industry leaders, such as General Electric Company ("GE") will continue to bring innovative products and designs to reality.

In early March 2008, the U.S. Department of Energy and the U.S. Environmental Protection Agency awarded GE the ENERGY STAR Partner of the Year "Sustained Excellence" award for the third straight year. This award recognized GE's efforts in creating high-performance household appliance and lighting products that help reduce non-renewable energy consumption and protect the environment.

http://www.geconsumerproducts.com/pressroom/press_releases/appliances/energy_efficient_products/sustained_excellence_07.htm

http://news.moneycentral.msn.com/ticker/article.aspx?Feed=BW&Date=20080304&ID=8278172&Symbol=US:GE

New energy-efficient appliances are being introduced into our lives almost every day. For example, it was recently announced that Canadian-based Linamar Corp, a leading automotive power train producer, has launched a 'green' lawnmower. These cordless, battery-powered lawnmowers, feature a one-hour, re-chargeable battery life that can be optionally charged with a solar panel. All of these technologies increasingly rely on rare metals.

http://www.thestar.com/article/410265

Avalon is well positioned to benefit from the new demand for rare metals from the consumer products industry through the development of its large rare metals resources at the Thor Lake deposit in the Northwest Territories, where a $5.0 million work program is now underway.

If you have any comments or questions, please do not hesitate to post them on Avalon's official investor relations hub at http://www.agoracom.com/ir/Avalon .

Regards,

AGORACOM Investor Relations